LH introducing additional CC charges

Discussion in 'Miles & More | Lufthansa, SWISS, Austrian/Partners' started by nldogbert, Aug 3, 2011.  |  Print Topic

  1. nldogbert

    nldogbert Silver Member

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  2. legalalien
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    legalalien Gold Member

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    :( While the fees are probably close to what LH has to pay in CC processing fees on a typical ticket, it is cost of doing business. It's not like LH customers (at least in the US) have many choices as far as methods of payment go, especially when booking online.

    Paypal charges fees on payments; I don't see why Paypal transactions would be excluded.
     
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  3. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Do US credit card companies allow merchants to charge fees for use of a credit card?
     
  4. legalalien
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    legalalien Gold Member

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    Probably depends on the contract LH has with their CC processor. It think it's usually frowned upon, but not specifically disallowed. What if LH calls it 'convenience charge', a-la IRS or Ticketmaster?
     
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  5. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    As a taxpayer, I can understand the IRS fee, but don't get me started on Ticketmaster... :mad:
     
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  6. MSPeconomist
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    MSPeconomist Gold Member

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    Normally not and more specifically, some like AmEx insist that the charges/conditions to use their card can't be worse than to use some other card.
     
  7. Canadi>n
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    Canadi>n Gold Member

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    This practice is widespread in Australia where most travel companies charge an additional 1.5% when using credit cards. The reason comes from the higher fee issuers levy on the use of their ultra-premium cards (VISA signature, MASTERCARD world). Merchants have been complaining to financial regulators in many countries about these increased charges. So far nobody is putting such a fee in NAmerica.
     
  8. oliver2002
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    oliver2002 Silver Member

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    The new OPC doesn't apply to the US market, just 6 countries in Europe.
     
  9. jetsetter
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    jetsetter Silver Member

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  10. they should at least not charge if one is using a Miles and More credit card. Bastards.
     
  11. TRAVELSIG
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    TRAVELSIG Gold Member

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    If there is not a large backlash- how long until this comes to other countries?
     
  12. Counsellor
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    Counsellor Gold Member

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    I believe that's standard. If I recall correctly, US-based CC issuers say you cannot charge for using their credit card, but you can offer a discount for cash.

    As to the "convenience fee" charged by Ticketmaster and the tax processors, I think the logic is that the fee is charged by the intermediary, not by the ultimate recipient of the base charge. By that I mean that with the IRS, the fee is charged by the website that allows you to use the credit card, not by the IRS itself; similarly, Ticketmaster acts as an intermediary in selling tickets, not as the ticket issuer (the venue where the show is held). I doubt Lufthansa could argue it is in a similar situation when it sells a ticket for travel on Lufthansa.
     
  13. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Lots of small convenience stores have signs indicating a credit card surcharge fee or minimum amounts, both I believe in violation of their CC agreements. Of course, they aren't in a position to easily mark every item they sell with two prices, a cash and a credit card price. Unlike, say, gas stations which sell three different types of gas, and thus can easily post two different prices.

    Which is fine until the event gets cancelled and the ticket issuer refunds you the value of the ticket minus the "convenience fee".
     

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